Emkay Morning Post | 19th September, 2017

Emkay Morning Post
Tuesday, September 19, 2017
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Emkay Research Summary § BoP Review; CAD widens to 2.4%; risk to BoP getting elevated Despite sharp widening in current account deficit (CAD) to a 4-year high of 2.4% of GDP, forex reserves surged by US$11.4bn, significantly contributed by short-term capital inflows. Read more… § Trade Review; trade deficit widens on consumption led imports Trade deficit remained elevated at US$11.8bn in Aug’17, led by a sharper growth in imports vis-à-vis exports growth. Exports growth was concentrated while growth in imports was broad-based. Read more… § Banking & Financial Services Sector Update; NBFC AR Drill-down: What lies beneath? We analyzed the annual reports of asset financing NBFCs under our coverage universe and the key findings. Read more… Key Result Updates § Dynamatic Technologies Q1FY18 Result Update; GST implementation mars performance; Accumulate; Target: Rs2,613 Dynamatic Technologies (DYTC) has reported lower-than-expected operational performance. Revenue declined by 20% yoy. EBIDTAM declined by 530bps yoy and the company reported a loss of Rs95mn. Read more… Key News Updates § Mahindra & Mahindra (MM) – MM and Ford Motor have entered into a 3-year strategic alliance in the automotive space in India and overseas markets. Besides e-mobility and electric cars, the two companies will also seek each other’s help on distribution, sourcing and reaching global markets. Link § Prestige Estates Projects (PEPL) – Canadian pension fund Caisse de dépôt et placement du Québec is in advanced talks with the Prestige Group to invest US$200mn in the Commercial Real Estate assets of the Bengaluru-based real estate developer. Experts are hopeful of concluding this transaction by the end of December’17. Link Technical View Market Outlook Continuing its winning spree, the Nifty added 67 points, scaling a fresh record high of 10171.70 after witnessing a gap-up opening and also settled with the highest close. It has given a decisive breakout above our mentioned level of 10150, which signifies further strength. We had mentioned that “on crossing above 10130-10150 zone, the Nifty can extend its rally towards 10200 level”. This is unfolding nicely. Above 10200, the Nifty can extend gains up to 10240-10250 levels. Immediate support is seen at 10130 followed by 10090. § Support: 10130/ 10090 § Resistance: 10200/10240

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